Market rebounds by 0.7% on expectations of bumper earnings
After few days of downturn, expectations of brighter outlook on companies’ performance for the 2018 financial year, spurred investors’ appetite in some highly capitalized stocks yesterday, causing the All-share index to rise by 0.7 per cent.At close of transactions yesterday, the All Share Index (ASI) gained 302.70 absolute points, representing an increase of 0.95 per cent, to close at 32,129.94 points. Similarly, market capitalisation grew by N113 billion, to close at N11.982 trillion.
The improved performance was impacted by gains recorded in medium and large capitalised stocks, amongst which are; International Breweries, Guaranty Trust Bank, Zenith Bank, Dangote Flour Mills and Dangote Cement.Analysts at Afrinvest Limited believed that the positive performance recorded yesterday would persist into subsequent trading sessions as investors continue to take positions in fundamentally sound stocks.
“We believe that the positive performance recorded today will persist into subsequent trading sessions as investors continue to take positions in fundamentally sound stocks”, they added.
Market breadth was positive, recorded 25 gainers against 10 losers. McNichols recorded the highest price gain of 9.80 per cent, to close at 56 kobo, per share. Cutix followed with a gain of 9.76 per cent to close at N2.25, while NPF Microfinance Bank rose by 9.72 per cent to close at N1.58, per share.
Wema Bank appreciated by 9.09 per cent to close at 84 kobo, while Sovereign Trust Insurance up by 8.70 per cent to close at 25 kobo, per share. On the other hand, PZ Industries led the losers’ chart by 9.67 per cent, to close at N12.15, per share.
Livestock Feeds followed with a decline of 8.96 per cent to close at 61 kobo, while Consolidated Hallmark Insurance lost 7.14 per cent to close at 26 kobo, per share.Law Union & Rock Insurance shed 5.45 per cent to close at 52 kobo, while United Capital depreciated by 2.99 per cent, to close at N3.25, per share.
However, total volume of trades decreased by 33 per cent to 228.48 million units, valued at N2.61 billion and exchanged in 3,544 deals. Transactions in the shares of Diamond Bank topped the activity chart with 33.03 million shares valued at N82.11 million. United Bank for Africa (UBA) followed with 31.1 million shares worth N239.14 million, while Zenith Bank traded 28.87 million shares valued at N703.1 million.Access Bank traded 21.01 million shares valued at N124.2 million, while Transnational Corporation of Nigeria (Transcorp) transacted 16.98 million shares worth N37.56 million.